Team h q rator+ day 5 v5

Have feedback for us? Please e-mail Rod: [email protected]

QRator+

Rodolfo Luis AmeJosh

# of Customers

M T W TR Total

6 31 34 5 76

Pre-stay ‘eHarmony’: connecting guests with uniquely tailored experiences

mailto:[email protected]


Customer Loyalty drives $

Knowledge = Service Improvements = Loyalty

QRator+ Delivers loyalty by allowing Hotels to learn about their

customers



Customer Development > Broad and deep

Concierge Management Guests Corporate Content/IT

15 10 37 11 3



What We THOUGHT What We DID

•Hotel guests want local experiences

•Hotels want to improve their concierge services

•Need not met: Hotels don’t have dedicated concierge services or have underperforming ones

•The best way to deliver local NY content to tourists/users was through real-time “QRators”

•Talked with hotel concierge and hotel managers

•Brainstormed business model pivot: customized solutions (not repeatable or scalable?) -> standard concierge database and platform (satisfy the largest need)

•Segmented market and defined target market as 2nd-tier, urban hotels

Day 0-1 Review: What we Thought -> Did



What We THOUGHT What We DID

•Platform opportunity for limited or no concierge hotels instead of competing or complimenting hotels with concierge services

•Guests want local experiences

•2nd tier guests would prefer 1st tier service

•Quality of content was important

•Hotels control their concierge service

•Talked with concierge, managers, guests, corporate

•Pivoted to complement current concierge services

•Allow guests to control the level of concierge service they want before and at the hotel

•Construct loyalty platform to drive recurring revenue and referrals – and allow hotels to improve their service internally by knowing their guests better

•Presented prototype plans to 3 hotels – responded positively

Day 2-4 Review: What we Thought -> Did



What We THOUGHT What We DID•Guests in our target market want

local experiences

•Local content provider to chain hotels with many city locations

•Curated content drives customer loyalty

•Customers know what they want to do before arriving at hotel

•Surveyed end users in our target market and hotel management

•Aggregate content from trusted sources: Nymag, TimeOut, Zagat, Ticketmaster

•Value to hotel: retention/referral, customer data, promotions, marketing tool

Day 5: What we Thought -> Did



QRator+: Canvas V

Cost structure Revenue streams

Key resources Channels

Key activitiesKey partners Value proposition

Costumer relationships

Costumer segments

Automated Services once a client / personal for initial sale

Marketing and tracking Tool Indirect – White

Label (Web)

SaaS

Tech-Savvy Travelers that are visiting a city and don’t know it well1. Leisure2. Business

Franchise (Mgt. owned properties in Experience rich locations (e.g. Urban areas)

Guest

Content

Hotels

All 3

Tailored experienced based recommendations

Personnel (FC)

IT (FC)

Hotel CRM / CRS / PMS

IT Infrastructure

Knowledge Database

Human Talent

Information Exchange

$

Automated Services – simulating personal relationship

Content ProvidersKnowledge Management Data Analytics

Customer Analytics +Retention + Referral

Owned + Direct

% of Revenue

On-site Staff (Manager + Concierge)

Intellectual – profile matching technology

Analytics (VC)



Archetype of Customer

Franchisee of corporate – Management owned properties 20 / 30 properties in urban areas

Decision making tree: On-site staff (Front-desk, Concierge, IT,

Manager) Management Company:

CTO (CEO sign-off; no need for BOD approval)

Metrics: Sales cycle = 3-6 months CAC = TBD LTV = TBD, <5% churn rate

e.g. Marriott

e.g. Hotel REIT, LLC



Day 6 (Next Monday) and Beyond: What we will Do•Three scheduled talks with potential Early Evangelist (Testers)

•Plan Minimum Viable Product (Diaper.com approach)

•Finalize TAM, SAM, TM assumptions

•Get CAC and LTV estimates

•Partnership development – CRS, CRM, PMS



QRator+ The engine that drives Customer Loyalty at your hotel



Appendix



QRator+: Initial Canvas





Costumer segments

•B2B: > 3 Star Hotels w/limited concierge staff

•B2C: Hotel Guest

•Dedicated personal assistance

•Discovery of destination as local

•Customized/tailored guest services

•On-demand service – Efficiency relative to more staff

• Information exchange

• Sourcing of Curators

•Group of Curators (locals in- the-know)

•Payment processors

• IT infrastructure

•Knowledge Database

•Human talent

•Personnel

• IT

•Owned + Direct:•Web• App

•B2B – SaaS

•B2C – App (freemium) + Annual Issue (pay-per-issue)



QRator+: Canvas II





Costumer segments

> 3 Star Hotels w/limited to no concierge staff

Dedicated personal assistance

On-demand service – Efficiency relative to more staff

Owned + Direct:•Web• App

SaaS

Hotel Guest

Hotel Management:(Corporate + On-site)

App (freemium) + Annual Issue (pay-per-issue)

Curators

Self-Service

Self-Service

Guest

Content

Hotels

All 3

Discovery as local

Customized/tailored guest services

Cache - Recognition

Personnel

IT

Group of Curators (locals in-the-know)

Payment Processors

IT Infrastructure

Knowledge Database

Human Talent


Sourcing of Curators

$



QRator+: Canvas III





Costumer segments

> 3 Star Hotels w/limited to no concierge staff

Dedicated

On-demand service – Efficiency relative to more staff

Owned + Direct:•Web• App

SaaS

Hotel Guest

Franchisors

App (freemium) + Annual Issue (pay-per-issue)

Curators

Self-Service

Self-Service

Guest

Content

Hotels

All 3

Face-2-face local Interactions

Up-to-date Content

Cache - Recognition

Personnel

IT


Payment Processors

IT Infrastructure

Knowledge Database

Human Talent



$

Franchisee

On-site Staff

Pay-per-Use

Personalized



QRator+: Canvas IV





Costumer segments

Dedicated

Marketing and tracking Tool Indirect – White

Label (Web)

SaaS

Hotel Guests Hip, Tech-Savvy Travelers that are visiting a city and don’t know it well1. Leisure2. Business

Hotel Ecosystem of Experience rich locations (e.g. Urban areas)

Indirect – White Label

Guest

Content

Hotels

All 3

Face-2-face local Interactions

Tailored experienced based recommendations

Cache - Recognition

Personnel

IT


Payment Processors

IT Infrastructure

Knowledge Database

Human Talent



$

Pay-per-Use

Personalized

Content Providers

Data AnalyticsCustomer Analytics +Retention + Referral

Owned + Direct



Day 5 > Customer Acquisition & CompetitionTypical Customers Acquisition Competition

Hotel:•Franchisee of large

corporate chain•Management-owned

properties•Invests in providing

better service•20-30 properties

Guest:•Business or leisure•Higher income•Enjoys experiences •Wants same activities as

at home (running)•Already member of

loyalty programs•Male & female, 20s-30s

•Acquire franchisee management of hotel chains

•Strategic decision likely made at top management level (CEO), but not full system roll-out

•Fastest to implement: 3 months – design survey to match hotel branding, build technology, train staff

•Access hotel guests through hotel database, not 3rd party booking agent

•Build partnerships with content providers, event managers, restaurants

•In-house, existing loyalty programs

•CRM platforms (Opera, Cendyn)

•Online travel booking (Expedia, Travelocity, Orbitz)

•Outsourced concierge services (Continental)

•Marketing firms

•Free content providers: Zagat, Yelp, Trip Advisor, Time Out, Urban Daddy

•Potential entrants: Facebook, Google



Day 5 > Market Sizing

$10.2 billion

$3.1 billion

$229 million

TAM

SAM

TM

TAM = Total marketing for US hotels

SAM = TAM adjusted by:52% of Full Service Hotels58% of Hotel in urban areas

TM = SAM adjusted by:15% of marketing budget we will

charge50% penetration assumption

Note: Market sizing exercise is only for US, if international hotels were included, it would be a much larger market.

Source:STR



Day 5 > Selected loyalty programsLoyalty Program Hotel Chain 1865 Langham Hotels InternationalChoice Privileges Choice Hotels Fiesta Rewards Grupo PosadasSwissotel Circle Swissotel Hotels & ResortsHilton HHonors Hilton hotelsHyatt Gold Passport Hyatt Kimpton InTouch Kimpton GroupMarriott Rewards Marriott owned hotelsPan Pacific Privileges Pan Pacific Hotels and Resorts

Priority ClubInterContinental chain hotels (including Holiday Inn)

Starwood Preferred Guest Starwood hotels and resortsShangri-La Hotel Golden Circle Shangri-La and TradersMaS Rewards Sol Melia Hotels & ResortsByRequest Wyndham branded hotelsRitz Carlton Rewards Ritz Carlton

Additional potential target customersAman Resorts Biltmore Hotels Fairmont HotelsGaylord Hotels Grand Hotels Kempinski HotelsLoews Hotels Taj Hotels Rosewood HotelsMandarin Oriental Le Meridian Fontaineblaue ResortsITC Hotels Jumeirah The Luxery CollectionMorgan Hotels Mövenpick Hotels Peninsula HotelsRelais & Châteaux RockResorts



What We THOUGHT What We DID What We WILL DO•Guests in our target

market want local experiences

•Local content provider to niche hotels with limited or no concierge hotels

•Curated content drives customer loyalty

•Customers know what they want to do before arriving at hotel

•Surveyed end users in our target market and hotel management

•Aggregate content from trusted sources: Yelp , UrbanDaddy, StubHub, Trip Advisor, TimeOut

•Value to hotel: retention/referral, customer data, promotions, marketing tool

•Build minimum viable product

•How much are hotels willing to pay?

•Develop preliminary pricing and cost assumptions

•Think about who owns customer data

Day 3 Review:What we Thought -> Did -> Will Do



Day 3 > Get Out of the Building!




$2.5 billion

$1.5 billion

$743 million

TAM

SAM

TM

Assumption:Hotels would pay $2 per room for customer profiling, recommendations and future “experience matchings”



What We THOUGHT What We DID What We WILL DO•Platform opportunity for

limited or no concierge hotels

•Guests want local experiences

•2nd tier guests would prefer 1st tier service

•Hotels control their concierge service

•Talked with 31 people: concierge, managers, guests, corporate

•Budget hotels have basic platforms centered on ticker broking

•Outsourced concierge

•2nd-tier, midtown guests want to see top attractions instead of local experiences

•Focus on niche hotels (i.e. A-Loft) which attracts guests who want local experiences

•Deliver curated content based on hotel location and average guest profile

•Define what are the sources of best content (known, reliable, repeatable)

•Develop unique add-on experiences




Day 2 > Get Out of the Building!QR Company Role Key FeedbackCorporateAI Starwood Hotels Director of Sales Already have a platform internally -- would like more content -- price importantAI Choice Hotels Director of Mktg iPad handles most basic customer requestsAI Aloft Harlem Mgmt, Events Great idea but the cost is important -- would like exclusivityAI Aloft Harlem Guests x5 Would use concierge, but use smartphones when no concierge presentAI Columbia Parents x4 No concierge services -- would like knowing where events are locallySite VisitsJW Marriott Junior Mgmt In-house staff curate their own recommendationsJW Best Western Low-end FD/CN No concierge service -- stock flyersJW Courtyard Marriot CN Outsource Outsourced to Continental (ticket broker)JW Double Tree Hilton Guest (FL) Does not use CN -- does own research for ideasJW Double Tree Hilton Drink at bar CN depends on person -- assume there are kickbacksJW Fitzpatrick Hotel 2 FD/CN Have shelf ideas -- Google, Zagat for new requestsLS Residence Inn CN Outsource Old School concierge / will like to connect with younger generationLS Marriot Courtyard PT CN/FD Does feel technology can improve his role, like one-on-oneLS Fairfield Inn FD, no CN Disinterested, rely on tech hardware at hotelLS Hampton Inn FD, no CN Does not see problem, very disinterested with customer servicesLS Comfort Inn General Mgmt Technology has changed the industry for the betterLS Comfort Inn FD, no CN Technology ruined sales that were done at hotel and commissions were lostLS Columbia Club FD, no CN Business guests don’t need much a concierge / know the cityRC Double Tree Hilton CN Outsourcing Prevalent in NYRC Comfort Inn General Mgmt Concierge Services depend on Size (>100 rooms)RC Holiday Inn FD To Break-Even in concierge a property needs high turn-over ratesRC Holiday Inn CN Ticket Broker - not service orientedRC Comfort Inn CN No training / barely spoke EnglishRC Double Tree Hilton General Mgmt High staff turnover / Works only within system



Customer Development > Day 2

What we learned

Franchisor / Franchisee

Model

Content is King where Customer

Demographics are aligned

Best Western

(BW) properties

give BW services

Outsourced Concierges

are ‘Distribution

Centers’

NY is a unique market



What We THOUGHT What We DID What We WILL DO

•Hotel guests want local experiences

•Hotels want to improve their concierge services

•Need not met: Hotels don’t have dedicated concierge services or have underperforming ones

•The best way to deliver local NY content to tourists/users was through real-time “QRators”

•Talked with hotel concierge and hotel managers

•Brainstormed business model pivot: customized solutions (not repeatable or scalable?) -> standard concierge database and platform (satisfy the largest need)

•Segmented market and defined target market as 2nd-tier, urban hotels

•Develop idea of “in house” services (incremental revenue generation to hotel) to complement “out of house”

•Estimate hotel’s willingness to pay for service

•Define what are the sources of best content (known, reliable, repeatable)




Customer Development > Day 1

What we learned

Concierges are moving

towards unions

Concierge Services are ‘Key’ part of

Guest Services

Referral system is Grey, but doesn’t apply

across the board

CRM solutions exist, but limited

tracking of off-site guest

activities

Concierges are Level 3 employees

In-house vs. outsourced Concierges




$1.7 billion

$541 million

$108 million

TAM

SAM

TM

Assumption:Segmented hotels will spend $1 per room in concierge / customer service



QRator+ The engine that drives Customer Loyalty at your hotel

Service Mock-Up



Customer Loyalty drives $

Delivers loyalty by allowing you to learn about your customers

Knowledge = Service Improvements = Loyalty

QRator+

Service Mock-Up



QRator+ in action - Reservation

Link (White Label) to QRator+ smartSurvey

Service Mock-Up



QRator+ in action – Confirmation E-mail

Link (White Label) to QRator+ smartSurvey

Service Mock-Up



QRator+: smartSurveyWhat image best describes your food taste?

Service Mock-Up



QRator+: smartCuration

Service Mock-Up



QRator+: smartProfile

Service Mock-Up



stores Mr. Smith’s profile and screens for future activities at locations where Warwick has

properties

QRator+

Service Mock-Up



+

Mr. Smith

QRator+

QRator+ drives Customer Loyalty

May 2013

Targeted promotional communications to customers

+ Superior service

Loyal Customers

Service Mock-Up


Education

Team h q rator+ day 5 v5